BP US convenience stores

BP PLC
15 November 2007

The following was issued by BP America Inc in the USA at 19.30 UK time

NOVEMBER 15, 2007


                BP TO SELL MOST COMPANY-OWNED, COMPANY-OPERATED

                     U.S. CONVENIENCE STORES TO FRANCHISEES


                  Long-term franchise agreements will preserve

                      high-value fuels distribution system


NAPERVILLE, IL - BP's U.S. Convenience Retail unit announced today that it will
sell all of its company-owned and company-operated convenience stores. The
majority of sites will be sold to franchisees and some will also be sold to
dealers and large distributors (jobbers). The sale of the convenience stores
will be completed over the next two years. The sites will continue to market BP
fuels in the eastern U.S. and ARCO fuels in the western U.S. The franchise
agreement is 20 years and requires sites to be supplied with BP or ARCO branded
fuels for the term of the 20-year contract.

'By tapping into the entrepreneurial experience and knowledge of local station
owners, we will build a strong franchise network that will help us grow our
business,' said Fiona MacLeod, president of BP U.S. Convenience Retail.
Currently in the U.S., about 95 percent of BP's retail sites are operated by
independent businesspeople.

BP will support franchisees with a strong field-based staff and a small head
office located in La Palma, California. The U.S. Convenience Retail office in
Naperville, Illinois will close. As announced last month, BP will move to a
single franchised convenience store brand-ampm-in the U.S.

'The ampm brand has a 30-year track record in the western U.S. and has seen very
positive results east of the Rockies based on the value that franchisees bring
to the business. The brand has a 94 percent brand awareness rating west of the
Rockies, and a strong international presence in Japan, Brazil, and Mexico. We
are excited about growing the brand in the eastern U.S.,' said MacLeod.

The business change is in line with BP's October reorganization announcement
aimed at simplifying the company and improving performance. Of BP's 13,000 U.S.
retail sites, this sale of more than 700 company-owned and -operated convenience
stores will eliminate 9,500 BP convenience store positions and 350 business
support staff. About 100 employees from BP's Pipelines and Logistics Unit will
also be affected.

'We know that these changes will be very difficult for our employees, and we are
putting measures in place to assist affected business support staff, including
job placement assistance,' said MacLeod. 'It's been our experience that the
majority of convenience store employees are retained by the new owners.'

MacLeod emphasized that convenience retail is a key BP business that positively
represents the BP brand, has a strong franchise base and a legacy of operational
excellence. 'This business and the people in it have created a culture of
excellence that will be the backbone of our organization going forward.'

Diversity and inclusion continues to be an important part of BP's franchising
efforts. In 2006, BP began an initiative to recruit minority franchisees, and
that work will continue. 'We are not leaving these communities,' said MacLeod,
'As much as possible, we want ampm stores to be owned and operated by people who
live in the communities we serve.'

Franchising opportunities in individual marketing areas will be announced
separately. For more information on BP franchising, please visit
www.bpampmfranchising.com.

Notes to Editors:

  • The ampm brand was founded in 1978 in Southern California by ARCO. The
    brand became part of BP when BP acquired ARCO in 2000.

  • ampm convenience stores have been recognized in the Franchise Times 'Top
    200' and Entrepreneur's 'Franchise 500.'

  • ampm stores are currently found in California, Nevada, Oregon,
    Washington and Arizona. BP is franchising stores in Chicago, Indianapolis,
    Pittsburgh and Atlanta; BP Connect stores in these markets will be converted
    to ampm. Remaining company-owned and -operated sites in these markets, as
    well as Columbus, Cleveland, Cincinnati and Orlando, will be converted to
    ampm convenience stores and franchised. There are more than 2,000 ampm
    stores in Brazil, Japan and Mexico.

  • A jobber is a company that purchases large quantities of fuel from a
    refiner (such as BP) for distribution to gas stations.

  • BP markets more than 15 billion gallons of gasoline every year to U.S.
    consumers through 13,000 retail outlets. BP is the single, global brand
    formed by the combination of the former British Petroleum, Amoco
    Corporation, Atlantic Richfield (ARCO) and Burmah Castrol.

Media contacts:

Valerie Corr, [phone]

Scott Dean, [phone]



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